Data Breach Insurance

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May 15, 2012
Privacy Act – Changes to Law and Practice
May 16, 2012

Data Breach Insurance

Management of data protection risks involves brand and reputation risks, financial costs, and operational challenges.

What is Data Breach (Cyber) Liability Insurance?

Data Breach (Cyber) Liability addresses the first party costs and third party liability risks associated with e-business, the Internet, networks and informational assets. Data Breach (Cyber)  Liability Insurance cover offers cutting edge protection for exposures arising out of Internet communications.

The risk category includes privacy issues, the infringement of intellectual property, virus transmission, or any other serious trouble that may be passed from first to third parties via the Web.

Do I need Data Breach (Cyber) Liability Insurance?

Anyone with a Web site now has the legal liabilities of a publisher.

The Internet has spun a whole new “web” of liability exposures.

Privately owned companies who venture onto the World Wide Web, face liability exposures that are emerging, evolving, and complex.

Commercial companies who disseminate information to the public via Web sites face the same legal exposures as publishers, yet most have little or no concept of their resulting legal responsibilities.

Furthermore, new legislation (Changes to the Privacy Act) continues to create potential liabilities, particularly in the areas of user privacy and domain name infringement

Why you will need Data Breach (Cyber) Liability Insurance?

Traditional liability policies may not address Internet exposures and the risks involved in Internet business have increased one hundredfold.

By disseminating information to the public via a website, commercial businesses now have some of the same exposures as publishers.

These include conventional publishing exposures such as copyright infringement, defamation and invasion of privacy, as well as emerging exposures related to operating on the Web.

Given the number of people and organisations already using the Net, a potential legal action from just any one of them would be costly.

The potential liability associated with web site content is already great, still growing, and rapidly evolving.

For most Businesses your computer network will provide internal and external email, and your own web site providing information about your company, its products and services and the possibility of some form of e-commerce.

Essential Data Breach covers :

1.         Public Relations, Crisis Management, Forensics and Security Specialist Services :

If something goes wrong then it’s all well and good having cover for potential  claims that may be made, but what happens when the incident is spread all over the papers? Bad press can have a major impact on anyone and can take a huge amount of time, effort and cost to rebuild.

2.         Information and communication asset rectification costs :

If systems have been damaged or data lost, it can be time consuming and expensive to repair or replace the systems. This cover will put a business back to the position that you enjoyed before the incident.

3.         Data Breach Business Interruption costs :

If systems or data are damaged or lost, it is highly likely that the functionality of the company will be restricted if not stopped. This cover will indemnify the insured for lost profit following a data breach incident.

4.         Regulatory defence and penalties :

The area of data security is continually moving with more and more responsibility being placed on companies.  Cover will extend to cover fines imposed by government or public authority regulator against the insured to the extent of insurable by law.

5.         Privacy breach costs cover :

The current Australian Law Reform Commission’s Report into the Privacy Act will mean that companies will be required by law to notify data protection authorities and data subjects where there has been a data loss.

This section of cover provides cover for the costs incurred in notifying those affected, credit monitoring of those affected where necessary and also the costs of setting up a call centre to field enquiries of concerned clients.

Summary of Data Breach (Cyber) Insurance Cover available :

a.         Failure in the handling, managing or storing of personal or corporate data.

b.         Unintentional violation of government or public authority legislation or regulation.

c.         Failure to protect against unauthorised access.

d.         Unintentional transmission of a virus.

e.         Reliance in good faith by a third party on a hackers fraudulent use of information

f.          Damage, destruction, alteration, corruption, copying, steeling or misuses.

g.         Defamation

h.         Infringement of IP

i.          Improper deep linking arising from publishing or broadcasting.

j.          Dishonesty of Employees

k.         Financial transfer indemnification

l.          Public Relations, Crisis Management, Forensics and Security Specialist Services

m.        Regulatory defence and penalties

n.         Withdrawal of content

o.         Privacy breach costs cover

p.         Information and communication asset rectification costs

q.         Data Breach (Cyber) Business Interruption costs

r.          Data Breach (Cyber) Extortion cover

Action Plan :

VeriSure are Specialists Risk Advisors.

Our commitment to providing the very best Policy Terms and Conditions at the most competitive Premium together with our professional Claims Advocacy is paramount.

Contact us for an extensive Risk Assessment today.

Knowledge then Security.

 

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